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Altus Group Limited (TSE:AIF) shareholders (or potential shareholders) will be happy to see that the Independent Director, William Brennan, recently bought a whopping CA$2.9m worth of stock, at a price of CA$53.75. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 2.9%.
See our latest analysis for Altus Group
The Last 12 Months Of Insider Transactions At Altus Group
Notably, that recent purchase by William Brennan is the biggest insider purchase of Altus Group shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of CA$52.95. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was William Brennan. We note that William Brennan was also the biggest seller.
William Brennan purchased 299.12k shares over the year. The average price per share was CA$55.78. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Altus Group insiders own 4.3% of the company, worth about CA$106m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Altus Group Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Altus Group insiders are well aligned, and quite possibly think the share price is too low. Nice! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.